The balance sheet of MacMillan Management Consulting, Inc. at December 31, 2013, reported the following stockholders equity:
Question:
The balance sheet of MacMillan Management Consulting, Inc. at December 31, 2013, reported the following stockholders’ equity:
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During 2014, MacMillan completed the following selected transactions:
Feb. 6 Declared a 15% stock dividend on common stock. The market value of MacMillan’s stock was $ 26 per share.
15 Distributed the stock dividend.
Jul. 29 Purchased 1,800 shares of treasury stock at $ 26 per share.
Nov. 27 Declared a $ 0.30 per share cash dividend on the common stock outstanding.
Requirements
1. Record the transactions in the general journal.
2. Prepare a retained earnings statement for the year ended December 31, 2014. Assume MacMillan’s net income for the year was $ 82,000.
3. Prepare the stockholders’ equity section of the balance sheet at December 31,2014.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Requirement 1 Date Accounts and Explanation Debit Credit Feb 6 Retained Earnings 26 per share 20000 ...View the full answer
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
